Construction employment added 11,000 jobs on net in January, according to Associated Builders and Contractors. On a year-over-year basis, the industry has expanded by 216,000 jobs—an increase of 2.7%.
The construction unemployment rate rose from 4.4% in December 2023 to 6.9% in January. The national unemployment rate for all industries was unchanged at 3.7% in January as the U.S. economy added 353,000 jobs.
Nonresidential construction added 7,600 jobs in January, with growth in two of three subsectors; nonresidential specialty trade contractors added 13,700 jobs, and nonresidential building added 1,600 jobs. Heavy and civil engineering lost 7,700 jobs.
“The construction industry added jobs for the 10th straight month in January,” said ABC Chief Economist Anirban Basu. “That was hardly the biggest story from today’s release, however, with total U.S. payroll employment increasing by a staggering 353,000 positions. That’s nearly twice the consensus forecast and represents yet another economic indicator that has surprised to the upside.
“The construction unemployment rate stood at 6.9% for the month, which is tied for the third-lowest January rate on record,” Basu continued. “As a result of labor scarcity, construction wages surged in January, increasing at the fastest rate since July 2023. With both the construction industry and the broader economy continuing to grow at a rapid pace, contractors will struggle to remain adequately staffed over the coming quarters, especially with a majority of contractors intending to increase their staffing levels over the next six months, according to ABC’s Construction Confidence Index.”
